ServiceNow's Q2 2026 performance saw a broad-based sequential acceleration, primarily due to delayed Q1 orders, recovering US Federal demand, and early customer renewals ahead of a July 1 pricing system cutover. Despite AI becoming a central topic in channel discussions, actual adoption and monetization of its AI features, like Now Assist, remain very early with no visible acceleration. The report suggests a Q2 beat and a raised H2 guidance are likely, but real AI usage is weak.
ServiceNow's revenue growth is currently driven by traditional sales cycles and pricing changes, not by AI product adoption.